January 8, 2015
NEW YORK: Hedge funds are stepping back onto the gold bandwagon as political turmoil in Greece and government actions in Asia helped send prices to their biggest monthly advance since June.
Bullish wagers on the metal increased for the first time in three weeks and have more than doubled since mid-November, US government data show. Short holdings dropped for the sixth week in seven. Bullion rose for a second straight month in December.
While cheap oil has kept inflation in check, gold’s appeal as an alternative asset got a boost on Greek opposition to austerity measures that may prompt the country’s exit from the euro area.China has lowered interest rates and waived some bank lending requirements to help spur growth, while Japan expanded stimulus measures. Bullion prices are up 7.1% since touching a four-year low in early November.